According to a report in the Financial Times, Tesco intends to open 100 outlets in Southern California during its first year in the US. However, the UK’s largest retailer has maintained a wall of silence regarding the issue.
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It has been widely speculated that Tesco intends to open smaller, convenience style outlets on the West Coast of the US – in California and Arizona – a geographical area where retail juggernaut Wal-Mart is relatively weak. Smaller outlets will help avoid direct competition with Wal-Mart, which favours out-of-town warehouse style stores.
“These reports are purely speculative,” a Tesco spokesperson told just-food. “We are concentrating on preparing our plans and building up our business before releasing more information. We want our American customers to be the first to see our new US format.”
The company has said it intends to invest up to GBP250m (US$452.99m) a year in establishing retail operations in the highly competitive US market.
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By GlobalData
